madison

Google dislikes marketing and PR and that's why new services fail

By | June 22, 2010, 11:23pm PDT

Summary: Google’s anti-marketing culture prevents it from creating succesful new services…

Google has had a long string of failures. It encourages its engineers to spend 20% of their time developing side projects but when those projects reach launch stage, their take-off is nearly always very disappointing.

Take a look at some of Google’s failures.

Colin Gibbs reporting on GigaOM:

    • Google Lively was a web-based virtual environment that allowed as many as 20 people to sit in a virtual room and chat with each other. The offering debuted in July 2008 only to have Google pull the plug a mere four months later.

    • Google Print Ads was dropped earlier this year after the company’s vision of bringing web-like automation to the world of traditional media failed to materialize. The effort went belly-up just three weeks before the death of Google Audio Ads, which ended a three-year run in February after the company failed to gain traction in the radio ad game.

    • Google Answers spent a year in beta before a full-blown launch in May 2003, but the effort to create a fee-based knowledge market never gained much traction outside a small base of users and the service was dropped in late 2006.

    • The social networking site Orkut launched early in 2004 as an independent project of noted Google developer Orkut Büyükkökten and has caught fire in Brazil, a market that accounts for roughly 50 percent of its membership. The site reportedly claims roughly 100 million users, which is impressive, but Google can’t be happy that its effort is virtually unknown in Europe and North America while Facebook, LinkedIn, MySpace and others have gained such impressive traction.

    • Google Catalog Search debuted in 2001 as a way for consumers to go online to check out their favorite print catalogs that had been scanned and uploaded. Of course, retailers were already taking their inventories online themselves, and the effort was put to rest earlier this year.

    • Google Health was released as a beta test in May 2008, but the service has yet to find much of an audience among insurers or the general public. Which may have something to do with the combination of the words “health” and “beta test.”
    • The location-based service Dodgeball was shut down in 2009 after Google had acquired it four years earlier, and while Google continues to operate Jaiku – a social networking service it picked up in 2007 — the company has effectively abandoned the project. The technologies and expertise from both startups is being incorporated into other Google businesses and projects, however.

    I can easily add a lot more to this list. Google Video; Google’s acquisition of Jot; Google Wave; Knol; Checkout; Catalogs; Base; Squared; and Google Buzz could be the latest.

    Google has tremendous scale so it is puzzling to some why so many of its services should have been such failures. But, it isn’t that surprising if you consider its culture because Google believes that good products will find their users based on their own merits.

    What Google fails to recognize is that it needs to assign marketing support. Without marketing support it is wasting the cream of its engineering talent.

    Have you seen any marketing for Google services beyond an occasional text ad?

    I’ve never been contacted by any PR companies, or Google corporate comms people to talk about a new Google service or product. Yet I receive countless such invitations from smaller companies trying to get media attention.

    Google’s failure to recognize the need for effective marketing is deep rooted within its engineering culture. Engineers don’t believe in marketing. Many software engineers will deride a company’s success (e.g Apple) as “it’s just marketing.”

    But marketing is not easy and successful marketing is not a commodity (yet engineers are becoming a commodity.)

    Google’s own success grew out of a non-marketing approach; Google search was simply a better product. Google is proud that it didn’t use marketing to become a success.

    But times are different today. There is a tremendous amount of media already on the Internet and this level will rise to a media tsunami as companies and individuals make full use of their media publishing capabilities. The media tsunami will drown less able companies, products, and services.

    Effective marketing is going to become ever more important, and more expensive, simply because the media tsunami is raising the bar for everyone to stand out.

    Company culture is very difficult to change and it changes slowly and that’s why Google will continue to launch new services, and it will continue to fail because it doesn’t understand the need for follow up marketing and PR.

    And that means it will continue to remain a one-trick pony.


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    Tom Foremski reports on the business and culture of Silicon Valley at the intersection of technology and media.

    Disclosure

    Tom Foremski

    Tom Foremski is the editor and publisher of Silicon Valley Watcher and Silicon Valley Watch. Tibco Software is an advertiser.

    Biography

    Tom Foremski

    In May 2004, Tom Foremski became the first journalist to leave a major newspaper, the Financial Times, to make a living as a full-time journalist blogger. He writes the popular news blog Silicon Valley Watcher--reporting on the business of Silicon Valley.

    Tom arrived in San Francisco in 1984, and has covered US technology markets for leading computer journals around the world.

    Talkback Most Recent of 30 Talkback(s)

    • Tom: You know that accepting failure is a big part of success in the Bay
      Area. And, sometimes things that look like failure, with persistence, become successes. Take Windows 1 and Windows 2 for instance. What if Microsoft had given up after version 2 did not succeed??

      Maybe, Google could use some more marketing skills, but, with persistence, some of those "failures" you are talking about could become multi-billion franchises in the long run.

      MS has also had a number of spectacular "failures" as you call them in recent years. The only things bringing in big money are the Windows and Office monopolies.
      ZDNet Gravatar
      DonnieBoy
      22nd Jun 2010
    • Sorry DonnieBoy. Google is a one trick pony, and your appolgies
      are as transparent as your resume
      I find it funny that when MS (or any company) has a failure, you use that to say how bad they are, yet when Google has failure after failure you say but, with persistence, some of those "failures" you are talking about could become multi-billion franchises in the long run .

      Google is smart enough to understand that when something has no future, or will never be a sucsess in the long run, that you pull the plug on it, which is exactly what they did, they pulled the plugs.
      ZDNet Gravatar
      John Zern
      22nd Jun 2010
    • Well, yes, almost all ad supported, but, hardly one trick.
      They have search, but, there are a lot of ads outside of search. They have Android, which, outsold iPhone last month. They have Google Voice, which will be very hot. They have gmail, calendar and everything in the Google Apps inventory. So, they focus on ads to monetize, but, they are getting ad inventory from a lot of different areas they have invested in.
      ZDNet Gravatar
      DonnieBoy
      22nd Jun 2010
    • ZDNet Gravatar
      DonnieBoy
      22nd Jun 2010
    • RE: Google's failures with new services will continue...
      @Donnie - a few things:

      1) Android is free - Google makes no money on it but pays out a considerable amount for the staff that create, test, market and promote the OS.

      2) Google IS a one-trick-pony - they make money in one place - advertising sales ... and that's it. EVERYTHING else they do is an attempt to disrupt someone else: ChromeOS is meant to disrupt MS/Apple, Chrome is meant to disrupt Mozilla/MS/Apple, etc.

      3) Now compare Microsoft's return for initial investors vs. Google's return for initial investors: MS is up more than 25,465% whereas Google is "only" up 348%. It's early days for Google right now - it'll be interesting to see how their stock fares if they continue with only one revenue source ... which now is experiencing the first real competition in its history.
      ZDNet Gravatar
      de-void-21165590650301806002836337787023
      22nd Jun 2010
    • @devoid: Yes, they monetize their products using advertising, but, they DO
      have many different products. If a company has many different products, and they monetize them by charging an up-front license fee, does that mean they are a one trick pony? They clearly ONLY make money from license fees!!!

      And, you really have no idea how much money Google makes from advertising on the Android platform. And, destabilizing a competitor trying to crush you IS priceless.
      ZDNet Gravatar
      DonnieBoy
      22nd Jun 2010
    • Yup...
      Yup..Google sure is hurting right now. I do not even know how they stay in business to be honest with you. They will be shutting down the doors within the next two or three months because of ineffective marketing!!!

      WTF MAN!!! If only they had you at the helm they possibly could become the largest player in the IT sector...OH..really...they already are...well WTF are you talking about marketing then and their "need" to change the processes that got them to the top.

      Google is quite simple. Give people latitude to develop and create and not squash creativity. While employing only the smartest and brightest minds.....I think they will do fine!!!! LOL
      ZDNet Gravatar
      ctunk
      22nd Jun 2010
    • RE: Google's failures with new services will continue...
      @ctunk
      And it is quite refreshing that company stands alone on its products vs. some "corporate image" that is complete BS anyway. Nothing is perfect but at least they do not try and fool people into something they are not...personally I find that very refreshing in this day in age when everything is about "flash and flare" while substance and great products are a second thought. As a matter of fact I would argue that marketing is a signficant hinderance to quality. That concept is quite deep and can not be accomplished to make people understand in a ZDNET post but Marketing and other Business Owners are more concerned with profit/image/greed and will cut and slash anything and anyone that can be seen as expendable for profit. How did companies survive before t.v. and internet??? THEY MADE GOOD ****!!!! Google writes good code and has a heck of a server infrastructure. They do what they do well and all day long money just rolls in. THeir side projects are just that...SIDE PROJECTS.
      ZDNet Gravatar
      ctunk
      22nd Jun 2010
    • RE: Google's failures with new services will continue...
      @ctunk - erm ... what planet are you on exactly?

      Google has done all it can to portray itself as doing "no evil" and yet they secretly collect huge numbers of IP addresses mapped to GPS locations and scan every email send via GMail.

      Google is FAR scarier than Apple and Microsoft combined.
      ZDNet Gravatar
      de-void-21165590650301806002836337787023
      22nd Jun 2010
    • RE: Google's failures with new services will continue...
      @ctunk
      And lastly the stock is up some $2 and some odd sense to nearly $500 PER SHARE MAN!!!!!!! NUFF SAID. Stick to writing articles and let engineers engineer and business people (they do exist at Google LOL) run businesses.

      You just stick with the typewriter (nostalgic is it not)
      ZDNet Gravatar
      ctunk
      22nd Jun 2010
    • Based on advertising, not App uptake or anything else
      So it makes sense that Google pulls the plug on losing propositions.
      ZDNet Gravatar
      John Zern
      22nd Jun 2010
    • Sense? You should stick to NOT writing articles.
      @ctunk: Come on...you're putting us on, right? You have more cents than that.
      ZDNet Gravatar
      tricktytom
      22nd Jun 2010
    • @John Zern. If there is App uptake, then, there is advertising uptake.
      Google monetizes with advertising, Microsoft monetizes by asking for your hard earned dollars up front. Of course, the only way Google can do that is because it costs them a lot less to deliver as web applications.
      ZDNet Gravatar
      DonnieBoy
      22nd Jun 2010
    • RE: Google's failures with new services will continue...
      @John Zern
      Yes, I believe it makes total sense to pull the plug on anything that deviates from the lines they have drawn if there are doubts in a wide array of areas, and what they choose as a primarily focus as a company. That does not mean they should stop those ventures those. One might be golden!

      They have endless buckets of cash. hey branch out, often to see what type of interest exists in a given product or service, more as experiments, and if it is not a home run they do not believe an "experiment" is worth lost labor, monetary risk, image, and what their corporate goals are at a given time. In short, they have money they "play" with, but their focus is sharp and dedicated on the larger picture what they are envisioning for a long term strategy at Google. Different things have different weights and importance at this time. Why spread yourself think and risk a great thing if they think something is amiss?

      Anymore, the person that actually values a large corporation, employing American's, that do a great job at what they do, is the crazy one!! Everyone is so extreme on every issue. I have several friends/colleagues that I have been fortunate enough to cross paths with over my career that have ended up at Google and they love it.

      I just find it very difficult to listen to those who claim to be an expert on a company that they have not dissected with a fine tooth comb. How many hours have any of you worked at Google? What makes you an expert? And I am the crazy one because I actually believe they are doing phenomenal work in the science/engineering/computing world? I also believe, as an outsider, people have become overly important in their own minds and believe they know everything about everything. Google markets the way they market for very specific reasons. It is not an accident.

      Maybe we are just not privy to their ideals and what they "want" Google to become. Maybe we just do not, dare I say "know" the answer. But we know everything! happy Maybe ..just maybe..we do not know better than Google how to run Google. It is possible!

      But of course if you do not hate on everything anymore you are the crazy one. The crazy become normal, and the normal become crazy. I just call it rationale and logic, but others call it insanity. It is laughable that people that have never spent a moment in a meeting at Google can spew absolute truths about what they want to become as a company and act like they know what is "best for Google"

      I just will kindly disagree...jealousy is nasty disease. Check yourself every day of misery follows. Be happy for them!! It is an amazing rise and story of our time. Understand what they do online (advertising), search, soon cloud, OS's. Anything else is "toy" to them. Maybe in a few years you will see this transition I just think they have bigger fish to fry than Dodgeball at this time...Maybe...just Maybe...
      ZDNet Gravatar
      ctunk
      22nd Jun 2010
    • Tom: You know that accepting failure is a big part of success in the Bay
      Area. And, sometimes things that look like failure, with persistence, become successes. Take Windows 1 and Windows 2 for instance. What if Microsoft had given up after version 2 did not succeed??

      Maybe, Google could use some more marketing skills, but, with persistence, some of those "failures" you are talking about could become multi-billion franchises in the long run.

      MS has also had a number of spectacular "failures" as you call them in recent years. The only things bringing in big money are the Windows and Office monopolies.

      Finally, these are all very new frontiers, and the only way to learn is by trying and figuring out what does and does not work. Because Google does a lot of trying, they will also have more failures.
      ZDNet Gravatar
      DonnieBoy
      22nd Jun 2010

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